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Floating Rate Fund

Investment Adviser: Foresters Investment Management Company, Inc. is the Fund's investment adviser and Muzinich & Co., Inc. serves as subadviser of the Fund.

Portfolio Managers: Bryan Petermann and Clinton Comeaux

Investment Objective and Strategy

The Fund seeks a high level of current income. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in floating rate loans and/or bonds. The Fund will normally invest the majority of its assets in U.S. dollar denominated senior secured floating rate loans and/or bonds. The Fund may invest in floating rate loans and/or bonds of any maturity or credit quality, but typically will invest in short duration below investment grade floating rate loans and/or bonds (commonly referred to as “high-yield” or “junk bonds”). The Fund generally will acquire floating rate loans as assignments from lenders. 

Sector Allocation (%)

As of 06-30-2017

This information is for illustrative purposes only and includes only invested cash; therefore, the sum of all sectors as a percentage of net assets may not equal 100%

Returns as of 08-31-2017 06-30-2017
Gross/Net Exp as of 09-30-2016 Gross/Net Exp as of 09-30-2016
Average Annual Total Returns
Class 1 Yr. % 3 Yr. % 5 Yr. % 10 Yr. % Since inception* Inception date Gross/Net Exp %
Average Annual Total Returns
Aat NAV4.241.79N/AN/A1.9210-18-20131.27/1.10
w/ sales charge1.690.92N/AN/A1.2210-18-20131.27/1.10
Advisorat NAV4.441.99N/AN/A2.1810-18-20130.98/0.90
Institutionalat NAV4.632.23N/AN/A2.3310-18-20130.83/0.70
Average Annual Total Returns
ClassA
at NAV
1 Yr. %4.24
3 Yr. %1.79
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.92
Inception date10-18-2013
Gross/Net Exp %1.27/1.10
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %1.69
3 Yr. %0.92
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.22
Inception date10-18-2013
Gross/Net Exp %1.27/1.10
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %4.44
3 Yr. %1.99
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.18
Inception date10-18-2013
Gross/Net Exp %0.98/0.90
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %4.63
3 Yr. %2.23
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.33
Inception date10-18-2013
Gross/Net Exp %0.83/0.70
Average Annual Total Returns
Class 1 Yr. % 3 Yr. % 5 Yr. % 10 Yr. % Since inception* Inception date Gross/Net Exp %
Average Annual Total Returns
Aat NAV3.482.01N/AN/A2.0210-18-20131.27/1.10
w/ sales charge0.871.13N/AN/A1.3510-18-20131.27/1.10
Advisorat NAV3.782.23N/AN/A2.2710-18-20130.98/0.90
Institutionalat NAV3.982.47N/AN/A2.4310-18-20130.83/0.70
Average Annual Total Returns
ClassA
at NAV
1 Yr. %3.48
3 Yr. %2.01
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.02
Inception date10-18-2013
Gross/Net Exp %1.27/1.10
Average Annual Total Returns
ClassA
w/ sales charge
1 Yr. %0.87
3 Yr. %1.13
5 Yr. %N/A
10 Yr. %N/A
Since inception*1.35
Inception date10-18-2013
Gross/Net Exp %1.27/1.10
Average Annual Total Returns
ClassAdvisor
at NAV
1 Yr. %3.78
3 Yr. %2.23
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.27
Inception date10-18-2013
Gross/Net Exp %0.98/0.90
Average Annual Total Returns
ClassInstitutional
at NAV
1 Yr. %3.98
3 Yr. %2.47
5 Yr. %N/A
10 Yr. %N/A
Since inception*2.43
Inception date10-18-2013
Gross/Net Exp %0.83/0.70

*For funds with less than 1, 3, 5 or 10 year performance data.

 

 

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance of share classes will differ because each class is sold pursuant to different sales arrangements and bears different expenses.  The Class A returns shown with sales charges are based on the maximum sales charge of 5.75%. The Class B returns shown with sales charges are adjusted for the applicable deferred sales charge (maximum of 4% in the first year). The Advisor Class and Institutional Class returns are shown as NAV only returns since these classes are sold without sales charges. Redemptions of Class B shares may be subject to a deferred sales charge. For performance data current to the most recent month-end call 800 524 2803 or visit Pricing & Performance. Returns may reflect waivers or reimbursements of certain expenses. Absent of these waivers or reimbursements, returns may be lower.

Sector Allocation (%)

As of 06-30-2017

This information is for illustrative purposes only and includes only invested cash; therefore, the sum of all sectors as a percentage of net assets may not equal 100%

Top Holdings (%)

As of 06-30-2017
Top Holdings (%)
Security% of Total Net Assets
Brand Energy & Infrastructure Services, Inc., 5.250%, 06/16/20241.9%
NFP Corp, 4.495%, 01/08/20241.5%
Alliant Hldings Intermediate Inc., 4.416%, 08/12/20221.5%
Exopack Holdings SA, 5.250%, 06/07/20241.4%
Delta 2 Lux Sarl (Formula One), 4.567%, 02/24/20241.4%
Dorna Sports, S.L., 3.500%, 04/12/20241.4%
USI Holdings Corp., 4.179%, 04/05/20241.4%
Brickman Group, Ltd., LLC, 4.209%, 12/18/20201.3%
HII Holding Corp., 4.546%, 12/20/20191.3%
Patheon Holdings, 4.504%, 04/11/20241.3%
Total14.4%

This information is solely for illustrative purposes. The portfolio as of the date of this report may or may not be the same as the portfolio on the date this material is used.

Class A Advisor Class Institutional Class
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 2.50%1 None None
Maximum deferred sales charge (load) (as a percentage of the lower of purchase price or redemption price) 1.00%2 None None
Class A Advisor Class Institutional Class
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees 0.60% 0.60% 0.60%
Distribution and Service (12b-1) Fees 0.30% None None
Other Expenses 0.37% 0.38% 0.23%
Total Annual Fund Operating Expenses 1.27% 0.98% 0.83%
Fee Limitation and/or Expense Reimbursement3 0.17%   0.08% 0.13% 
Total Annual Fund Operating Expenses After Fee Limitation and/or Expense Reimbursement 1.10%   0.90%  0.70%

1Due to rounding of numbers in calculating a sales charge, you may pay more or less than what is shown above.

2A CDSC of 1.00% will be assessed on certain redemptions of Class A shares that are purchased without a sales charge.

3The Adviser has contractually agreed to limit fees and/or reimburse expenses of the Fund until at least January 31, 2018, to the extent that Total Annual Fund Operating Expenses (exclusive of interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend costs related to short sales, and extraordinary expenses, such as litigation expenses, if any) exceed 1.10% for Class A, 0.90% for Advisor Class and 0.70% for Institutional Class shares.  The Adviser can be reimbursed by the Fund within three years after the date the fee limitation and/or expense reimbursement has been made by the Adviser, provided that such repayment does not cause the expenses of the Fund’s Class A, Advisor Class or Institutional Class shares to exceed the applicable expense ratio in place at the time expenses were waived or assumed.  The fee limitation and/or expense reimbursement may be terminated or amended prior to January 31, 2018, only with the approval of the Fund’s Board of Trustees.

Managers

Muzinich & Co., Inc. (“Muzinich”) serves as the investment subadviser of the Fund For Income and Floating Rate Fund.  Muzinich has discretionary trading authority over all of the Fund’s assets, subject to continuing oversight and supervision by FIMCO and the Fund’s Board of Trustees.  Muzinich is located at 450 Park Avenue, New York, NY 10022.  Muzinich is an institutional asset manager specializing in high yield bond portfolio and other credit-oriented strategies.  As of September 30, 2015, Muzinich managed approximately $23.6 billion in assets worldwide.

The Fund For Income and the Floating Rate Fund are managed by a team of investment professionals who have active roles in managing the Funds.  The following investment professionals manage the Fund For Income and the Floating Rate Fund:  Bryan Petermann, Portfolio Manager, who joined Muzinich in 2010 and prior thereto served as Managing Director, Head of High Yield, at Pinebridge Investments (f/k/a AIG Investments), for the last 5 years of his tenure (2000-2010); and Clinton Comeaux, Portfolio Manager, who joined Muzinich in 2006.  Mr. Comeaux has served as Portfolio Manager of the Fund For Income since 2009 and Mr. Petermann has served as Portfolio Manager of that Fund since 2010.  Mr. Petermann has served as a Portfolio Manager of the Floating Rate Fund since its inception in 2013, and Mr. Comeaux, has served as Portfolio Manager of the Fund since 2014.  Messrs. Peterman and Comeaux also serve as Portfolio Managers of another First Investors Fund.

How to obtain a prospectus

For more complete information on any First Investors fund, you may obtain a free prospectus by downloading it here, contacting your registered representative, or calling 800 423 4026. You should consider the investment objectives, risks, fees or charges, and expenses of the fund carefully before investing. The prospectus and summary prospectus contain this and other information about the fund, and should be read carefully before you invest or send money. An investment in a fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Principal Risks:  You can lose money by investing in the Fund.  There is no guarantee that the Fund will meet its investment objective.  The Fund is intended for investors who:

  • Are seeking an investment that offers a high level of current income,
  • Are willing to accept fluctuations in the value of their investment and the income it produces as a result of changes in interest rates and the economy,
  • Are willing to accept possible loss of principal and accept a high degree of credit risk and market volatility, and
  • Have a long-term investment horizon and are able to ride out market cycles.

Here are the principal risks of investing in the Fund:

Credit Risk.  This is the risk that a debt issuer may become unable to pay interest or principal when due.  The prices of debt securities are affected by the credit  quality of the issuer.

Floating Rate Loan Risk.  The value of any collateral securing a floating rate loan may decline, be insufficient to meet the borrower’s obligations, or be difficult or costly to liquidate.  It may take significantly longer than 7 days for investments in floating rate loans to settle, which can adversely affect the Fund’s ability to timely honor redemptions.  In the event of a default, it may be difficult to collect on any collateral and a floating rate loan can decline significantly in value. The Fund’s access to collateral may also be limited by bankruptcy or other insolvency laws.  Although senior loans may be senior to equity and debt securities in the borrower’s capital structure, the loans may be subordinated to other obligations of the borrower or its subsidiaries. If a floating rate loan is acquired through an assignment, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. In addition, high yield floating rate loans usually are more credit sensitive.  Floating rate loans may not be considered “securities” for certain purposes of the federal securities laws and purchasers, such as the Fund, therefore, may not be entitled to rely on the anti-fraud provisions of the federal securities laws.

Foreign Loan Risk.  A loan and/or bond issued by a foreign corporation or its subsidiary may be subject to risks associated with certain regulatory, economic and political conditions of the issuer’s foreign country and, in event of default, it may be difficult for the Fund to pursue its rights against the issuer in that country’s courts.

High Yield Securities Risk.  High yield debt securities (commonly known as “junk bonds”), including floating rate loans, have greater credit risk than higher quality debt securities because their issuers may not be as financially strong.  High yield securities are inherently speculative due to the risk associated with the issuer’s ability to make principal and interest payments.  During times of economic stress, high yield securities issuers may be unable to access credit to refinance their bonds or meet their credit obligations.

Interest Rate Risk.  In general, when interest rates rise, the market value of a debt security declines, and when interest rates decline, the market value of a debt security increases.  As of the date of this prospectus, interest rates are near historic lows, which may increase the Fund’s exposure to the risks associated with rising interest rates.  Floating rate loans and bonds generally are less sensitive than fixed-rate instruments to interest rate changes, but they could remain sensitive over the short-term to interest rate changes.  The interest rates on floating rate securities adjust periodically and may not correlate to prevailing interest rates during the periods between rate adjustments.  Securities with longer maturities and durations are generally more sensitive to interest rate changes.

Liquidity Risk.  The Fund is susceptible to the risk that certain investments may be difficult or impossible to sell at a favorable time or price.  Market developments may cause the Fund’s investments to become less liquid and subject to erratic price movements. High yield securities and loans tend to be less liquid.  Floating rate loans generally are subject to legal or contractual restrictions on resale and may trade infrequently.  Assignments of bank loans and bonds also may be less liquid at times because of potential delays in the settlement process or restrictions on resale.

Market Risk.  The floating rate loan, high yield loan and bond market can experience sharp price swings due to a variety of factors, including changes in economic forecasts, stock market volatility, large sustained sales of high yield bonds by major investors, high-profile defaults or the market’s psychology.  Adverse market events may lead to increased redemptions, which could cause the Fund to experience a loss or difficulty in selling securities to meet redemptions.

Sector Risk.  Sector risk is the risk associated with the Fund holding a significant amount of investments in similar businesses, which could be affected by the same economic or market conditions.

Security Selection Risk.  Securities selected by the portfolio manager may perform differently than the overall market or may not meet the portfolio manager’s expectations.

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